Numerous solar technology and installation companies globally have seen their stocks surge off the back of the Democrats’ victories in the US midterm elections.
With investors responding to the prospect of a more supportive environment for clean energy in the US, European renewable energy companies saw stocks rise in morning trading, and US companies such as First Solar also saw a sharp rise in pre-market trading.
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German inverter manufacturer SMA Solar’s shares were up over 7% at the time of writing. Trading in EDP Renewables, the subsidiary of Portuguese utility EDP, was up over 4% while French renewables Voltalia’s stock was up around 6%.
It has been a similar story today for US companies. At the time of writing, cadmium telluride thin-film manufacturer First Solar stock was up by around 8% in pre-market trading, while residential solar installer Sunrun’s stock was up around 7%. Module manufacturers Canadian Solar and T1 Energy were up over 7% and 11% respectively. Microinverter manufacturer Enphase was up 4.1%.
The upward trend reflects the hope that renewables in the US will now enjoy a more favourable political environment than has been the case so far in Donald Trump’s second presidency. Since his return to power last January, his administration has sought to roll back support for clean energy in favour of fossil fuels, notably targeting the tax credit provisions made in the Biden administration’s Inflation Reduction Act.
Responding to the election results, Tim Pawlenty, CEO of US trade body the Solar Energy Industries Association, said: “Energy affordability was a key issue in this election, reflecting the real pressures facing American households and businesses. The solar and storage industry looks forward to working with newly elected federal and state leaders to bring more affordable, reliable power online and deliver the energy savings Americans are demanding.”
